2020 Year in Review: Muskoka ‘Big Lakes’ Cottage Real Estate Market



January 7, 2021

2020 Muskoka ‘Big Lakes’ Cottage Real Estate Market

*This analysis looks at data from January 1st 2020 to January 1st 2021 percentages are reflected over this time span*

 

Thank you for checking out the year in review looking into the ‘Big Lakes’  in Muskoka! It was a record breaking year in the real estate market. Muskoka cottage market continues to be a stellar investment. Since the beginning of 2020 the market has shifted and changed drastically from the impacts of the year’s events.

 

The market began optimistically in 2020, but nothing could have affected the values and market more than the uncertainty of COVID-19. The shift from a mostly balanced market on the waterfront the past 10 years quickly transitioned into the strongest sellers market in history. With unit sales up 54.4% in 2020 the average sale price has gone up 23.7% to $2,337,783. The number of days to sell is 53 days and the fewest days on market for 2020 were in Q4 at 46 days to sell.

 

The sale price to list price ratio for 2020 was up 1.2% to 97.5%. These are record breaking numbers for the Muskoka cottage market. Incredible to see this happening in the area, great news for owners and investors in the area.

 

We hope this information is useful to you.

 

 

 

If you would like more information,  reach out anytime.

 

John Aben: (705) 788.4770

Mark Aben: (705) 788.4388

 

Email: info@abenteam.com 

 

Data based on the following:
Muskoka Waterfront Cottages — Lake Rosseau and Lake Joseph Cottages in Seguin Township
Excludes residential, vacant land, condo and commercial properties

The following statistics are only for the larger lakes in Muskoka and Seguin Township. These include the following: Lake Joseph, Lake Rosseau, Lake Muskoka, Skeleton Lake, Lake of Bays, Fairy Lake, Lake Vernon, Peninsula Lake and Mary Lake. 

What Type Of Market Are We In

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Number of Cottages for Sale for 2020 – Down 14.4% YOY

Number of Units Sold for 2020 – Up 54.3% YOY

 

344 (number sold) ÷ 422 (number listed) = .82 (82%)

82% = Sellers Market

SELLERS MARKET (> 55%) The number of buyer’s wanting homes exceeds the supply or number of homes on the market.

 

This is the first time in the data history that the market has had such a strong sellers market. Despite the decrease in listings of 14.4% year over year, unit sales have soared 54.3% since the beginning of 2020. We are experiencing a very strong sellers market where there is inadequate supply for the demand.

 

To have your home professionally staged, photographed, listed and SOLD contact the Aben Team for professional service. 

 

BUYERS MARKET (< 35%)
The supply of homes on the market exceeds demand.
BALANCED MARKET (35%-55%)
The number of homes on the market is equal to the demand or number of buyers.
SELLERS MARKET (> 55%)
The number of buyer’s wanting homes exceeds the supply or number of homes on the market.
muskoka-big-lakes-cottage-real-estate-sale-to-list-ratio

Average and Median Sale Price

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Average Sale Price $2,337,783

Up 23.7% YOY (2019 $1,890,083)

 

Median Sale Price $1,795,000

Up 33.75% YOY (2019 1,342,000)

 

Average sale price across the Big Lakes is up 23.7% since the start of 2020. We have seen a sharp increase in the amount of buyers looking to purchase in the area and the data on new listings indicate owners are holding onto their piece of Muskoka real estate longer, due to the drop in new listings over the past years.

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Number of Cottages Sold by Month

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54.3% more sales in 2020 YOY on the Big Lakes.

 

When to list

The spring market has been typically the best time to list your property, but I believe going into 2021 if you are in a position to sell an existing Muskoka waterfront property reaching out and developing a strategy is the best approach. In this market it looks like now the demand has never been higher and listing now could net the seller more while supply is still low as we begin the new year. As more listings begin to appear in the spring the demand could begin to ease.

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Average Sale Price on Lake Rosseau, Lake Joseph and Lake Muskoka

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Year in review on the Big Three lakes showing great numbers for average appreciation in sale prices! For insights into every unique property please feel free to reach out anytime!

 

*This analysis looks at data from January 1st 2020 to January 1st 2021 percentages are reflected over this time span*

 

Lake Joseph $4,157,752

Up 24.2% (2019 $3,347,862)

 

Lake Rosseau $3,543,680

Up 20.1% (2019 $2,950,741)

 

Lake Muskoka $2,099,622

Up 34.9% (2019 $1,625,081)

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Unit Sales on Lake Rosseau, Lake Joseph and Lake Muskoka

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Year over Year the Big 3 lakes have had major increase in activity. 2020 has been the most active market in recent history.

 

All unit sales are soaring while the supply for Muskoka cottages for sale is dwindling causing a serious sellers market. These three lakes are very much in a class and market of their own. Everything way up on the Big Three in southern Muskoka this year.

Looking at units sold…

Lake Joseph2020 units sold Up 59% 

2019 – 29 sales   2020 – 46 sales

 

Lake Rosseau 2020 units sold Up 40%

2019 – 40 sales   2020 – 56 sales

 

Lake Muskoka2020 units sold Up 47.9%

2019 – 94 sales   2020 – 139 sales

 

Tons of activity on the Big Three in 2020!

muskoka-big-lakes-cottage-real-estate-unit-sales-rosseau-joseph-muskoka

Average Sale Price on Lake of Bays, Huntsville Lakes Combined (Fairy Lake, Lake Vernon, Peninsula Lake, Mary Lake) and Skeleton Lake

muskoka-residential-price-increase

Great numbers on the Year in review for Huntsville lakes and Lake of Bays in 2020.  The increase in units sold and decrease in supply has proven a big factor in sending average sale prices way up through the pandemic in 2020.

 

Lake of Bays $1,632,467

Up 20.4% YOY (2019 $1,355,186)

 

Huntsville Lakes $1,276,915

Up 39.5% YOY (2019 $915,165)

 

Skeleton Lake $1,316,294*

Up 26.2% YOY (2019 $1,042,667)

 

*Average price based only on 3 sales. Not enough data to make this number meaningful.
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Unit Sales on Lake of Bays, Huntsville Lakes Combined (Fairy Lake, Lake Vernon, Peninsula Lake, Mary Lake) and Skeleton Lake

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Lake of Bays Up 48.9%

2019 – 47, 2020 – 70

 

Huntsville Lakes* Up 76.9%

2019 – 39, 2020 – 69

 

Skeleton Lake Up 266%**

2019 – 3, 2020 – 11

 

* Huntsville Lakes includes, Fairy Lake, Lake Vernon, Peninsula Lake and Mary Lake.
**Only 11 sales on Skeleton Lake for 2019. Not enough data to make the number meaningful.
muskoka-big-lakes-cottage-real-estate-unit-sales-lake-of-bays-huntsville-lakes-skeleton-lake

Number of Cottages Sold by Price Range

cottage-30%

The chart here is represents only the Big lakes.

 

As shown on the graph you can see the changes just over this year even. The amount of sales overall increasing however the number of sales is growing significantly as you move up wards in price on the chart.

This proves how there are more high value sales happening over time.

muskoka-big-lakes-cottage-real-estate-sales-by-price-range

Average Days on Market

Calendar-31-30%

Days on Market  53

Average days on market is 11 days fewer year over year 2020 vs 2019

Q4 actually has the fewest days on market at 46 days this year. This statistic shows how the demand is carrying on late into the year as supply shrinks into the winter months the properties listed are actually generating significant interest still and selling well below average days to sell which brings the statistic down further

muskoka-big-lakes-cottage-real-estate-days-on-market

Sold Price to List / Original Price

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List Price to Sale Price ratio – Up 1.3%

Increased from 95.8% in 2019 to 97.1% in 2020

 

Original List Price to Sale Price – Up 1.5%

Increased from 94.6% in 2019 to 96.1% in 2020

2020 Muskoka, Original List to Sold Ratio
Data Source: The Lakelands Association of Realtors